AI Debt Wave Grows: AMD Raises $4.75 Billion in Record-Breaking Bond Sale

AMD (AMD-US) has completed its largest-ever U.S. dollar corporate bond offering, raising $4.75 billion and joining the wave of corporate borrowing fueled by the AI boom.

According to Bloomberg, citing sources, AMD issued investment-grade bonds in four tranches, with maturities ranging from three to ten years. Driven by strong market demand, the pricing tightened by approximately 25 basis points from initial expectations, ultimately priced at a 0.9 percentage point premium over U.S. Treasuries.

AMD’s bond sale was one of three investment-grade transactions in the market on Thursday (13th). As the AI boom drives explosive demand for computing power, AMD is increasing spending to meet market needs.

AMD has recently announced agreements with companies including Anthropic and Microsoft (MSFT-US), aiming to expand the applications of its chips.

Analyst estimates compiled by Bloomberg suggest AMD’s revenue could surge 47% this year, surpassing $51 billion. As part of its collaboration with Anthropic, the developer of the Claude chatbot, AMD has committed up to $5 billion in investment.

In its filing, AMD stated that proceeds from the bond issuance will be used for general corporate purposes, which may include debt repayment. AMD has $875 million in bonds maturing next month.

As of June 27, AMD had only $3.2 billion in debt while holding $13.1 billion in cash and short-term investments. A company spokesperson said via email that AMD “is committed to maintaining a strong financial profile,” but declined to provide further details.

Lead underwriters JPMorgan Chase, Citigroup, and Bank of America declined to comment. Barclays, Morgan Stanley, and Wells Fargo, also part of the underwriting syndicate, did not respond to requests for comment.

AMD’s previous foray into the investment-grade bond market was in March 2025, when it raised $1.5 billion.